Inflation rate drops to lowest in six months

Inflation dropped to its lowest levels in nearly six months in early November as price levels in the case of both metals and fuels showed a sharp decline. The annual Wholesale Price Index-based inflation rate was at 8.98 per cent during the week ended November 1, sharply below the previous week’s annual rise of 10.72 per cent. The dip in the year-on-year inflation rate to a single digit level, after 21 consecutive weeks in the double digits, was on account of an all-round decline in price levels led by a sharp decline in annual inflation in the fuels category.

S&P outlook on India’s long-term rating remains stable

International ratings agency Standard and Poor’s affirmed its ‘BBB-’ long-term and ‘A-3’ short-term sovereign credit ratings on India. The outlook on the long-term rating remains stable. The report by S&P said the ratings on India reflect the country’s strong economic growth prospects and its deep government debt market, which helps accommodate its weak fiscal position. According to the report, the stable rating outlook balances India’s good external liquidity and growth prospects with its weak fiscal flexibility. An improvement in the sovereign ratings will depend on resumed fiscal consolidation that leads to a materially lower debt and interest burden, and additional reforms that lift the country’s growth prospects and income levels.

India likely to emerge ahead of other Asian countries from downturn according to a senior economist at CLSA

According to CLSA Asia-Pacific Markets equity and research firm, India is likely to emerge ahead of other Asian countries from downturn. This may be possible owing to benefits accruing from the upsurge in domestic consumption and lowered commodity prices. The other major factor contributing towards the healing is the fact that India’s trade is about 32.5 per cent of the gross domestic product (GDP), about half that of China and the European Union, according to the Asian Development Bank.

A CII-PwC survey finds that the market slowdown is temporary

According to a survey, conducted by CII-PwC between August and late October 2008, that included chief financial officers and finance heads of Indian companies with average revenue of Rs 2,915 crore, the slowdown in Indian markets is a temporary phenomenon even in the face of severe liquidity crunch worldwide. According to the study, the companies are becoming more focussed on lowering costs rather than considering borrowing at cheaper rates, to protect their shrinking bottom line. While 13 per cent of the participants were considering increase in their own stake in their companies, 37 per cent were contemplating acquiring firms. Almost 40 per cent of the respondents were looking at possible partnerships and joint ventures. As per the findings the companies might consider outsourcing of non-core activities and employing shared services for some transactional activities integrating the finance function with their supply chain.

Global consumer confidence survey conducted by Nielson ranks India second

According to a global survey on consumer confidence levels, spending and attitudes to recession, Indians have the second most optimistic attitude on the current world financial crisis after Norway. Conducted by The Nielsen Company in 52 countries, the survey revealed that one in two Indians, 45 per cent of Vietnamese and approximately a third of Russians and Chinese expect the global recession to end within a year. The survey adds that in India, employment rates will rise in inverse proportion to the developed world, aided by the adoption of workforce optimisation.

India’s tech spending seen growing 17-24 per cent by 2010 according to a study by Zinnov

Asia Pacific’s IT spending is expected to grow about 10-16 per cent till 2010, beating developed markets, according to a study by consulting firm Zinnov. While India’s IT spending is likely to grow between 17.6-24 per cent by 2010, China would grow 10-13 per cent, according to the study. This is in comparison to the 3.3-6.5 per cent increase expected in global IT spending. Expenditure on hardware, software and IT-BPO services comes under IT spending.

WiMAX to be USD 13 billion market in India by 2012

India’s broadband usage is set to improve sharply with as many as 27.5 million WiMAX users expected by 2012, according to projections made by industry body, WiMAX Forum. This means that in the next four years, about 20 per cent of the global WiMAX users will be in India, making it a USD 13-billion market.

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